Buying a Vehicle Unit Review

A comprehensive plan that covers most car parts, with a few exceptions, for a limited period of time.

• Powertrain Warranty

• Bumper-to-Bumper Warranty

• Depreciation

• MSRP

A decrease in the value of a vehicle.

• Depreciation

• Auto loan

• Interest Rate

• Auto lease

A financing division of the dealership you are getting the car from that can offer you an auto loan.

• Captive Finance Company

• Dealer-arranged financing

• "Buy here, pay here" Dealership

• Credit Union

A guarantee that covers the cost of repairing or replacing parts that move the car forward (engine, transmission, etc.).

• Powertrain Warranty

• Auto lease

• Car title

• Hybrid

A license tag fee that must be renewed annually.

• Car registration

• Auto lease

• Car insurance

• Auto loan

A type of auto loan where the dealership connects you with a lending institution (bank, credit union, etc.).

• Dealer-Arranged Financing

• Captive Finance Company

• "Buy here, Pay here" Dealership

• Credit Union

Susan is starting her car search. All of the following are questions she should ask herself EXCEPT...?

• What are my needs?

• How much will it cost to maintain the car?

• What type of car do my friends drive?

• How long do I want to keep this car?

Which of the following costs will not change the more you drive your car?

• Amount of depreciation

• Insurance premium

• Fuel costs

• State registration fees

All of the following are benefits of leasing a car instead of buying EXCEPT:

• A lower monthly payment

• Having the latest technology and safety features

• Being able to drive unlimited miles without fees

• You can get a new car every few years

Jane has found a great car on Facebook Marketplace and is going to buy from a private seller. Which of the following is GOOD advice for Jane as she goes to make his purchase?

• Always bring cash to cover the full cost of the vehicle.

• Have a trusted mechanic inspect the vehicle before making the purchase

• It’s a good idea to meet at the seller’s house to see where the vehicle is stored

• Make sure you turn the radio volume up the entire time you are test-driving the vehicle to make sure it has a good sound system